This study investigates the fabrication of core-sheath nanocomposite fibers by locating germanium (Ge) and silicon dioxide ($SiO_2$) nanoparticles selectively in the sheath layer by co-axial electrospinning. Co-axially spun fibers were prepared by electrospinning a pure PVA solution and Ge/$SiO_2$/PVA solution as the core and sheath layer, respectively. Core-sheath nanocomposite fibers were electrospun under a variety of conditions that include various feed rates for the core and sheath solutions, voltages, and concentric needle diameters, in order to find an optimum spinning condition. Ge/$SiO_2$ nanocomposite fibers were also prepared by uniaxial electrospinning to compare fiber morphology and nanoparticle distribution with core-sheath nanofibers. Using scanning electron microscopy, transmission electron microscopy, and energy dispersive X-ray analysis, it was demonstrated that the co-axial approach resulted in the presence of nanoparticles near the surface region of the fibers compared to the overall distribution obtained for uni-axial fibers. The co-axially electrospun Ge/$SiO_2$/PVA nanofiber webs have possible uses in high efficiency functional textiles in which the nanoparticles located in the sheath region provide enhanced functionality.